Report of Deputy Chief Executive

AGENDA NO.

REPORT TO

AUDIT COMMITTEE

26February 2018

REPORT OF DEPUTY CHIEF EXECUTIVE

INTERNAL AUDIT PROGRESS REPORT

SUMMARY

This report provides members with an update of the work carried out by the Internal Audit Section and the progress made against the Audit Plan 2017/18.

RECOMMENDATIONS

It is recommended that:-

1. The current position as identified in the attached update report is noted.

DETAIL

Background

1. Internal Audit is an independent appraisal function established by the Council to objectively examine, evaluate and report on the adequacy of internal controls. This role ensures that there is proper economic, efficient and effective use of resources. It also ensures that the Council has adequate accounting records and control systems.

1. Committee Members are reminded that the list of audit assignments undertaken in the current year to date has been circulated to all Councillors prior to the meeting. The intention is to give Councillors the opportunity to raise questions on issues that affect their ward or other areas of responsibility and for answers to be provided at the meeting.

Current Position

1. The attached update report shows the current position in respect of the progress against the 2017/18 audit plan and the results of the work that has been undertaken.
2. As reported at previous meetings significant time has been spent on training and team building. This has delayed the start of some of the audit work. The officer who was on maternity leave has now returned and the primary focus now is completing the audit plan. Vacancy
3. Members may recall an updated approach which included setting up a system of continuous audit. Significant progress continues to be made towards this with testing now being automated on a monthly basis in a number of areas. Because testing is undertaken continuously there will be a number of audits shown as on-going that will be finalised at the year end.

FINANCIAL AND LEGAL IMPLICATIONS

None

RISK ASSESSMENT

The results of the work undertaken by Internal Audit can be used by managers to assess their risk exposure, recommendations are made where there is perceived to be unacceptable risk.

COMMUNITY STRATEGY IMPLICATIONS

None

CONSULTATION

N/A

Name of Contact Officer:Andrew Barber, Audit & Risk Manager

Telephone No:01642 526176

Email Address:

INTERNAL AUDIT

AUDIT COMMITTEE UPDATE REPORT

2017/18

Internal Audit – Audit Committee Update

Report 2017/18

1AUDIT PROGRESS

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1.1The plan,approved on 20February 2017,was based on an audit assessment of risk which uses a number of factors to determine the likelihood of issues occurring including an understanding of the full scope of systems in operation, major change, concerns/external interest and results of previous audit work. It then assesses the impact any issues may have on the council’s strategic objectives, reputation, financial plans, assets and also the potential impact on individuals and/or the environment.

Audit Progress by Service Group

Actual Days Compared to Planned Days

1.2The tables below show an alternative view of the number of planned days v actual days and the projected available resources to complete the plan.

1.3The Audit Plan is constantly revised during the year to take account of changing requirements. Amendments to the Plan agreed on 20February 2017 can be summarised as follows:

2017/18 Planned Audits Amalgamated/Cancelled/Deferred

2017/18 Unplanned Audits Added to the Plan

1.4Counter Fraud

Work is continuing to complete the revisions to the Council’s Anti-Fraud and corruption strategy. Revised strategy is being presented at this meeting.

2AUDIT OUTPUT

Engagement Opinions

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2.1For each audit carried out Internal Audit provides an overall conclusion as to whether a sound system of internal control is being maintained. Each opinion is either “Full”, “Substantial”, “Moderate”, “Limited”, or “No” assurance depending on the conclusions reached and the evidence to support those conclusions. “Full” and “substantial” assurance normally indicates that the area under review has a reliable system of internal control.

2.2These individual opinions are summarised below:-

2.3An analysis of the recommendations supporting these opinions by priority is shown below:-

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Internal Audit – Audit Committee Update

Report 2017/18

DetailsofAuditsby Service Group

2017/18

2016/17

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Internal Audit – Audit Committee Update

Report 2017/18

2.4Shown below is a list of all the audit engagements undertaken during the year together with their assurance opinion. An explanation of any High priorityrecommendations is provided.

2017/18 Audit Plan Current Position as at 2February 2018

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